+65 6681 6717
230 Victoria Street, #15-01/08,Bugis Junction,Singapore 188024

16 January 2025 Posted by Elite Asia Marketing ESG No Comments

Gap Analysis of Sustainability Performance Based on EcoVadis Score Assessment

A gap analysis, in the context of sustainability, is a crucial tool for identifying the discrepancies between a company’s current sustainability performance and its desired or ideal state. This analysis often leverages external assessments, such as such as the EcoVadis Score Assessment, to benchmark performance against industry best practices and identify areas for improvement.

This article explores how to conduct a gap analysis using EcoVadis scores as a foundation.

Understanding EcoVadis Scores

EcoVadis is a leading provider of sustainability ratings for businesses. Their assessment covers four key themes: Environment, Labor & Human Rights, Ethics, and Sustainable Procurement. Each theme is further broken down into criteria, with scores ranging from 0 to 100, reflecting the company’s performance against industry best practices. A higher score indicates stronger sustainability performance. Conducting a gap analysis based on an EcoVadis Score Assessment help companies to align their sustainability strategies with global standards.

Conducting the Gap Analysis

The gap analysis process using EcoVadis scores involves several steps:

  1. Gather Data:
    Begin by obtaining your company’s EcoVadis scorecard. This detailed report provides a comprehensive overview of your performance across all themes and criteria. Note specific scores for each criterion within each theme.

  2. Establish Baseline:
    Your EcoVadis score serves as your baseline. Identify your strengths and weaknesses based on the scores achieved in each theme and criterion. Pay close attention to the specific criteria where you scored low. This will pinpoint areas needing the most attention.

  3. Define Target:
    Determine your desired sustainability performance. This might involve setting specific targets for improvement in each theme and criterion, aiming for a particular EcoVadis score, or aligning with industry-leading benchmarks. Consider your company’s overall sustainability goals and strategic objectives. Ambitious but achievable targets are key.

  4. Identify Gaps:
    Compare your baseline performance (EcoVadis score for each criterion) with your target performance. The difference between these two represents the gap that needs to be addressed. Focus your analysis on the areas with the largest gaps, both at the theme and criterion levels.

  5. Prioritise Actions:
    Based on the identified gaps, prioritise actions for improvement. Consider factors such as the magnitude of the gap, the feasibility of implementation, the potential impact on sustainability performance, and resource availability. Use a prioritisation matrix to rank actions based on impact and effort.

  6. Develop Action Plan:
    Create a detailed action plan outlining the specific steps required to close the identified gaps. This plan should include timelines, responsible parties, resources required, and measurable targets for each action (KPIs). Ensure alignment with overall business strategy.

  7. Implement and Monitor: Execute the action plan and regularly monitor progress. Track key performance indicators (KPIs) to measure the effectiveness of your initiatives and make adjustments as needed. Regular EcoVadis reassessments will provide valuable feedback on your progress. Regular reporting and review are essential.

Also Read:

EcoVadis: Who Should Get and How to Improve Performance

Illustrative Example


Source: EcoVadis Resources


Let’s say “X Manufacturing,” a company producing sustainable building materials, receives an EcoVadis score of 58. Their target is to achieve a score of 75 within three years. Their EcoVadis scorecard reveals the following:

Suppose your “Environment” theme score is 70/100, and the detailed breakdown shows:

  • Greenhouse gas emissions: 70/100
  • Energy consumption: 80/100
  • Waste management: 50/100

Clearly, waste management is the lowest-scoring criterion and represents a significant area for improvement. Your action plan should prioritise initiatives to improve waste management, perhaps by implementing a robust recycling program or investing in waste reduction technologies.

Once you’ve identified the low-scoring criteria, prioritise actions based on several factors:

  • Impact: Focus on criteria with the largest gaps and the potential for the biggest positive impact on your overall score.
  • Feasibility: Consider the resources (time, budget, personnel) required to implement improvements. Prioritise actions that are feasible and achievable within your constraints.
  • Urgency: Address critical issues (e.g., significant environmental risks) before tackling less urgent ones.

Conclusion

A gap analysis using the EcoVadis Score Assessment is essential for businesses aiming to improve their sustainability performance. By carefully reviewing the scorecard’s overall score, theme scores, criterion scores, and detailed feedback, you can effectively pinpoint areas for improvement, prioritise actions, and develop a targeted action plan to enhance your sustainability performance and boost your EcoVadis rating.

The Elite Asia ESG team is here to support you in your sustainability journey. From conducting materiality assessments to guiding your EcoVadis improvement strategies, we provide expert consultation tailored to your needs. Book an appointment for a consultation today!

Leave a comment

Your email address will not be published. Required fields are marked *